Week's USD Rally Stalls

GBP and CAD outperformed Thursday in what was a largely non-directional session for major currencies - the dollar gave up early gains as equities initially traded weaker, but most asset mean-reverted into the close despite the high volume of Fed chatter throughout the session. This resulted in middling performance from haven FX, with this week's USD/JPY rally stalling just shy of 50-dma resistance at 105.91.

It's been a busy session for European central banks, with the Norwegian, Swiss, Hungarian and Turkish central banks all active Thursday. Most notably, the Turkish central bank unexpectedly hiked rates by 200bps - a far larger hike than expected, which prompted a near 1% rally in the TRY. Elsewhere, the Norges Bank twisted their rate path projections to accommodate for higher near-term inflation while the SNB reiterated their active and easy policy stance. Lastly, the Hungarian central bank hiked their 1w deposit rate by 15bps outside of the regular meeting cycle, a move seen combating the HUF's persistent weakness.

UK public sector net borrowing figures and US prelim durable goods data are the calendar highlights Friday. There remain a few more central bank speakers though, with Williams, Villeroy and de Cos on the docket.